German business confidence rose to the highest level in 16 months in August, beating forecasts and indicating that the recovery in Europe’s largest economy is gathering pace. A measure of construction activity fell.
Spain’s turn toward wage cuts to restore competitiveness without leaving the euro is starting to bear fruit. At least that’s how it seems for Pablo Garcia, a 34- year-old autoworker who just got hired after a year out of work.
Commerzbank AG said it now expects the European Central Bank to lower its benchmark interest rate in the fourth quarter of 2011 and in the first three months of 2012 as the euro-region economy slides into a recession.